Easy Money Is Expanding Its Reach
Chris Temple is currently on his way down to the Chicago Resource Expo head tomorrow. Below is a link to sign up for free if you are in the Chicago area.
In today’s call we touch on a number of different topics. Starting with the renewed run in base metals. With copper back above $3 (currently $3.10) this could be a function of so much money in the system that needs to find a home. We also recap the Fed minutes from yesterday.
Click here to visit the Chicago Resource Expo website and sign up if you are in the area.
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Eric Sprott, Quinton H., Robert McCewan, and Pierre Lassonde will be multi-billionaires in 5 years.
It’s pretty obvious just how much the mining stocks outperformed bloated FANG stocks like Amazon AMZN just over the last 2 years. It boggles the mind to think how much they’ll outperform the general indexes over the next 2-3 years.
**> Let’ put things into perspective with just a 2 year chart showing how Execellon (EXN), Alexco (AXU), and Impact (IPT) performed versus Amazon (AMZN).
Even after their consolidation back down over the last year, the quality Silver Jrs are still crushing inflated juggernauts like AMZN.
http://stockcharts.com/h-sc/ui?s=EXN.TO&p=D&yr=2&mn=0&dy=0&id=p68758389212
*jugger-nots like AMZN 😉
good one!
Hold on to your nots……………. 🙂
$rut strong buy today. It tagged the 10 day ema today. “Correction is over. You won’t see it lower than today ever again in nominal, US dollar terms. :p
http://stockcharts.com/h-sc/ui?s=%24RUT&p=D&b=5&g=0&id=p22461509459&a=549931325&listNum=1
That’s funny, Spanky. You’re going to see it lower very soon!
What, like 0.5% lower? Sure.
I think the Fed has blown a bubble, and people are rationally piling into stocks because the Fed has expressly backstopped the markets. I suppose if you hedged currency risk, you have all bases covered in a hyperinflationary orgasm. Maybe when the last sucker realizes that a 10,000% gain in 6 months might be problematic, the PMs will finally get a real bid.
There is nothing rational about buying one of the oldest bull markets at lofty valuations only seen two or three times in the last century.
+1
hyperinflation
As long as there are undervalued alternatives, that changes nothing. Early in a hyperinflation, stocks will still be vulnerable to a large correction.
This is moral hazard of epic proportions. Apply game theory to the situation. If stocks falter, the Fed will come to the rescue with the printing press–they have stated exactly that. Ergo, why should stocks ever go down in nominal terms?
Emphasis on “hazard.”
Don’t take the bait. The Plunge Protection Team is nearly 30 years old; how’d that work for ya in 2008?
https://en.wikipedia.org/wiki/Working_Group_on_Financial_Markets
Sorry, 2008 was before the US govt and Fed went all-in on the stock market, QE and the wealth effect.
I’m well aware of their sorcery post-2008. It’s just PPT 2.0. They’re once again loading the trap with people like you who have faith in their words.
Also, the miners rarely if ever are able to rally much when the Dow is falling. Best case they tread water and then out perform once the stock market gets its footing.
At the beginning of a precious metals bull market, the miners can easily trend much higher while stocks fall apart.
In 2000-2002, the HUI as much as quadrupled while the Dow lost 30%:
http://stockcharts.com/h-sc/ui?s=%24HUI&p=D&st=2000-06-30&en=2002-09-30&id=p04163656137&a=507999498
FYI (and lol), the S&P would have to rise more than 40% while GDX goes nowhere just to get back to its late ’15/early ’16 level vs the miners.
If stocks breakout vs the miners right here, I will treat it like a trap:
http://stockcharts.com/h-sc/ui?s=%24SPX%3A%24HUI&p=W&yr=5&mn=0&dy=0&id=p55038609245&a=451612147
There’s always “just one more flush” isn’t there?
Yep–there’s clear bearish divergence between price action and indicators:
http://stockcharts.com/h-sc/ui?s=%24SPX%3A%24HUI&p=W&yr=5&mn=0&dy=0&id=p55038609245&a=549988579
Even if the S&P goes way up from here, nominally, I believe precious metals and their miners will leave it in the dust.
” There’s always “just one more flush” isn’t there? ”
A replay of this one for you:
Spanky, I wasn’t worried about one more flush in late 2015 either. Many experts were and they were wrong to be. The new lows that many miners made that fall were huge buying opportunities.
Many were very worried about rate hikes, too. Big mistake. I explained well in advance why the miners would be just fine — and they were.
This doesn’t look so good for stocks to me:
http://stockcharts.com/h-sc/ui?s=SPY%3AGDX&p=W&yr=6&mn=11&dy=22&id=p88152409131&a=550002776
Note the August breakdown and September backtest of the pitchfork:
http://stockcharts.com/h-sc/ui?s=SPY%3AGDX&p=W&yr=6&mn=11&dy=22&id=p88152409131&a=550004284
Based on that Pitchfork backtest….. do you think it’s cooked?
Also, are you trying to call a top? If not, you know very well what the final blowoff in a bubble can do to price and valuations.
So is it now, 3 months, 6 months, 12 months until “the top”? You said “soon”. Enlighten us.
You said we “won’t see it lower than today ever again…”
So my comment did not need to be based on calling a major top.
I think we’ll see it “lower than today” as soon as tomorrow and easily next week.
Easy $ Chris = Bitcoin, Litecoin, and Ethereum.
It’s Bitcoin rising this week. Up $1000 in about 5 days. Who can’t use a few extra Gs?
Litecoin woke from its slumber as well.
All hail crypto!
Jason:
#3 of 30 behaviors that will make you unstoppable.
3. Don’t be motivated by money or anything external.
Having nice things is, well, nice. But for you, it’s never been about the money, prestige or anything else outside of you. Take these things away and nothing changes for you. You’re still going to be pushing your personal limits and giving it your all. Give these things to you and they won’t destroy you like they do most people.
Yup, bitcoin hits record yet again, on the other hand, U.S. mint silver eagle sales are nothing to speak of.
OI is supposed to be pretty big
The 18th is the oil for yuan deal, that really should drop demand for US dollars, maybe then PMs start to react.
Course, maybe people choose cryptos.
Forget silver eagle , they are losers………..no body is paying up for eagles……
these are not numismatic coins……….unless , you wait…a couple of decades ……..
Just bullion, with a fancy name…………….jmo
Same with Maple leafs………..why waste the premium ………….jmo
Looks like everyone has given up on an October crash in the stock-markets.
Santa Rally already underway?
Even the plunge protection team will have a problem stopping the correction.
Yes, who will protect the PPT?
Who’s going to guard the guards?
Who will lookout for the lookouts?
Do we need the Plunge Protection Team – Panic Correction Protection Team?
Nope. Here’s what we’ll need:
http://www.homedepot.com/catalog/productImages/1000/e8/e8fcf07a-7422-4459-8bb6-4f35b85c94fa_1000.jpg
Alexandria Minerals….I’m telling you, this is a huge sleeper stock IMO
Novo…………the new shake and bake…………
The march to infinity begins…
http://stockcharts.com/h-sc/ui?s=AMZN&p=W&b=5&g=0&id=p68435927884&a=549930696&listNum=1
AMZN and GOOG will own the US in 20 years.